CANADA – Canadian pharmaceutical and cannabis company, Tilray has announced that it has entered a definitive agreement to acquire the securities of FHF Holdings trading as Manitoba Harvest for a consideration of US$318.56 million (CAD 419 million).

Tilray, which is the one of the largest and most sophisticated producers of premium medical cannabis in the world is seeking to utilize Manitoba’s capabilities in hemp and natural foods production.

The acquisition will bring together Tilray’s expertise in cannabis research, cultivation, production and distribution with leading natural food CPG company to create hemp and CBD-infused food and wellness products for North America.

According to the companies, the deal will enable them grow revenue while producing nutritious hemp foods and supplements to address growing demand in US and Canada.

Founded in 1998, Manitoba Harvest has proficiency working with cannabinoids, including cannabidiol (CBD).

Tilray is set to leverage the company’s already established distribution network to expand in the US and Canadian markets where CBD products are legalized.

“Tilray’s acquisition of Manitoba Harvest is a milestone for the cannabis industry.

It builds on the strategic partnerships we have formed with consumer brand industry leaders and demonstrates our track record of disrupting the global pharmaceutical, alcohol, CPG, and functional food and beverage categories,” said Brendan Kennedy, Tilray President and CEO.

“We’re excited to work with Manitoba Harvest to develop and distribute a diverse portfolio of branded hemp-derived CBD food and wellness products in the U.S. and Canada.”

Manitoba’s has a wide portfolio of hemp-based consumer products including oils and supplements sold in over 16,000 stores at major retailers across the U.S. and Canada.

With brands like Hemp Hearts™, Hemp Oil™, Hemp Yeah! ™ granola, Hemp Yeah! ™ protein powder and Hemp Bliss™ milk, the company is said to be the world’s largest hemp food manufacturer and a leader in the natural foods industry.

“We are excited about being an important part of the growth strategy for Tilray,” said Bill Chiasson, Manitoba Harvest CEO.

“By leveraging our combined strengths and capabilities, we will be able to accelerate our mission of transforming consumer health through the power of hemp.”

Manitoba, which operates two high quality BRC AA+ certified manufacturing facilities plans to launch a line of CBD containing Broad Spectrum Hemp Extracts as well as a line-up of Hemp Yeah! wellness bars this summer.

Manitoba Harvest will as a wholly-owned subsidiary of Tilray, with the two aiming to develop innovative new CBD wellness products and hemp-based consumer food products.